What is the purpose of the non-waiver provisions mentioned in the Bang Cookies amendment regarding the Hawaii Franchise Investment Law?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Hawaii Franchise Investment Law, the undersigned agree to the following modifications to the Bang Cookies Franchise LLC Franchise Agreement (the "Franchise Agreement"), as follows:
- Sub-Article 14.C.(6). Sub-article 14.C.(6), under the Article section titled "Conditions for Approval of Transfer," is supplemented by the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and
The Hawaii Franchise Investment Law provides rights to the franchisee concerning non-renewal, termination and transfer of the Franchise Agreement. If this Sub-article contains a provision that is inconsistent with the Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control.
- Sub-Article 15.B.(8). Sub-article 15.B.(8), under the Article section titled "Conditions for Renewal," is supplemented by the addition of the following:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Hawaii Franchise Investment Law, shall remain in force; it being the intent of this provision that the non-waiver provisions of the Hawaii Franchise Investment Law be satisfied; and
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the Hawaii Franchise Agreement Amendment includes non-waiver provisions to ensure that franchisees retain all rights and causes of action granted to them under the Hawaii Franchise Investment Law. These provisions are specifically added to sections regarding conditions for approval of transfer and conditions for renewal of the franchise agreement.
The amendment states that even with modifications to the franchise agreement, all rights and legal recourse available to the franchisee under the Hawaii Franchise Investment Law remain in effect. This means that franchisees cannot unintentionally relinquish their rights through standard contractual clauses. The intent is to comply with the non-waiver requirements of the Hawaii Franchise Investment Law, which protects franchisees in matters of non-renewal, termination, and transfer of the franchise agreement.
Furthermore, the amendment clarifies that if any part of the franchise agreement conflicts with the Hawaii Franchise Investment Law, the law will take precedence. This ensures that Bang Cookies franchisees in Hawaii are always protected by the full extent of their legal rights under state law, regardless of what the standard franchise agreement might otherwise stipulate. This offers an additional layer of security and legal protection for franchisees operating in Hawaii.